39 / 50
Adding size
What does anti-martingale pyramiding do while the trades are winning?
Anti-martingale pyramiding
What it bets
When the trades are right, size can be larger. When they are wrong, size should be smaller.
How the rule is written
Add only after a profit, at a spacing written in advance. After a loss, stop adding, or make the next trade smaller. The number of adds has a cap. The turtles adding units at intervals of N are a well-known example of this kind of sizing. Anti-martingale itself does not say whether the entry is a breakout or a moving average.
When it fails
Adding piles size onto the late part of the trend. When the trend turns, the units added last lose the fastest. Adding with no cap turns one trade into the wager itself.
Do not confuse it with
A martingale increases after a loss. Anti-martingale does not add after a loss. The two point opposite ways. Calling both of them adding does not make them the same risk.